Value Added Tax is a sales tax at a rate of 20% (June 2023). It is not added as a separate line item when shopping in stores, it is rolled up into the price so you don’t really notice it.
| % of VAT | What the rate applies to | |
|---|---|---|
| Standard rate | 20% | Most goods and services |
| Reduced rate | 5% | Some goods and services, eg children’s car seats and home energy |
| Zero rate | 0% | Zero-rated goods and services, eg most food and children’s clothes |
If you have a business and are VAT registered, you will need to ask for a VAT receipt for tax purposes, this will provide the exact amount of VAT on purchases.
